By Dick Kazarian, Managing Director, Borrower Analytics Group As noted in our Market Overview, the FHFA has announced significant changes to the LLPAs for Second Homes effective April 1, 2022. In this article, we take a closer look at the impact of Occupancy type within our CORE™ Agency model, with a focus on Second Homes…. Read more »
Perspectives
Market Overview
By Dick Kazarian, Managing Director, Borrower Analytics Group This Market Overview provides an overview of rates, prepayments, credit, housing markets, policy updates, and other topics of broad interest to mortgage market participants. Subsequent articles provide a deep dive into our CORE™ family of models, the MSR market, and the whole loan market. In this first… Read more »
Residential MSR Market Update – Q4 2021
By Mike Carnes, Managing Director, MSR Valuations Group MSR Pricing MSR prices continued their upward climb in Q4 2021. As displayed in Figure 1, MIAC Generic Servicing Assets (hereafter, GSAs™) have seen YTD price increases across all sectors and vintages, with a UPB-weighted increase of 34.4%. Across Conventional products, pricing increased substantially more for 30-year… Read more »
Whole Loan Market Update – Q4 2021
By Brendan Teeley, Senior Vice President, Capital Markets Group This article reviews recent developments and their impact on seasoned whole loan markets. MIAC regularly represents buyers and sellers across a broad range of market segments. In this article, we focus on the following: CRA, EBOs Fix-and-Flip, Puerto Rico, and Scratch and Dent. CRA – Community… Read more »
MIAC Perspectives – Winter 2022
In this issue… Market Overview Dick Kazarian, Managing Director, Borrower Analytics Group This Market Overview provides an overview of rates, prepayments, credit, housing markets, policy updates, and other topics of broad interest to mortgage market participants. Topics include: Mortgage Rates and Spreads, Prepayment changes from our MIMs Survey, MIMs Contributor Dispersion, and Policy News. Read more…… Read more »
MIAC Perspectives – Fall 2021
In this issue… Update on Market Rates and Prepayments Dick Kazarian, Managing Director, Borrower Analytics Group Year to date, primary rates have backed up 40 bps while secondary rates have increased 67 bps. This means that the primary/secondary spread narrowed by 26 bps. This primary/secondary (P/CC) spread is driven by numerous factors, including g-fees, servicing… Read more »
Update on Market Rates and Prepayments
By Dick Kazarian, Managing Director, Borrower Analytics Group MIAC’s quarterly Perspectives will cover themes such as housing markets, mortgage rates and spreads, rates and volatility markets, residential originations and securitizations, credit and prepayments. Mortgage Rates and Spreads Figure 1 displays a snapshot of primary and secondary 30-year conventional mortgage rates since the start of the… Read more »
Residential MSR Market Update – Q3 2021
By Mike Carnes, Managing Director, MSR Valuations Group MSR Pricing YTD MIAC Generic Servicing Assets (GSAs™) have seen YTD price increases across all sectors, with a UPB-weighted increase of 30.7%. Across Conventional products, pricing increased substantially more for 30-year than for 15-year. This is due to (a) 30-year primary rates increasing by more than 15-year… Read more »
A Closer Look at the Impact of Loan Age on GNMA Prepayments in MIAC’s CORE™ Models
By Dick Kazarian, Managing Director, Borrower Analytics Group As we’ve discussed in previous reports and documents, our CORE™ multi-factor prepayment model incorporates all of the explanatory variables displayed in Figure 1. We handle additional explanatory variables as over-rides to this base model. These expanded variables include FICO score, channel, loan purpose, occupancy, property type, and… Read more »
MIAC Perspectives – Summer 2021
In this issue… Residential MSR Market Update – July 2021 Mike Carnes, Managing Director, MSR Valuations Group Over the month of June, primary mortgage rates were mostly flat, while the CMS curve flattened significantly – with 2-year CMS rates backing up 10 BPs and 10-year CMS rates falling 15 BPs. During the same time period,… Read more »